North Carolina has no statute setting a general non-compete reasonableness test.
Instead, United Laboratories, Inc. v.
Kuykendall (1988) sets a five-factor test: a covenant is valid only if it is in writing, part of an employment contract, backed by valuable consideration, reasonable as to time and territory, and not against public policy.
No healthcare-specific non-compete law exists in North Carolina, and there is no dollar threshold.
N.C. Gen.
Stat. § 75-4, enacted in 1913, separately requires a written, signed agreement.
Mechanics, not a verdict on your contract
At a glance
Permitted — judged on reasonableness
Court decisions (no governing statute) — North Carolina common law — the five-factor reasonableness test from United Laboratories, Inc. v. Kuykendall, 322 N.C. 643, 370 S.E.2d 375 (N.C. 1988) — applied alongside N.C. Gen. Stat. § 75-4's writing-and-signature requirement.
Healthcare statute reaches veterinarians: No healthcare-specific non-compete statute.
North Carolina has no statute setting a general non-compete reasonableness test. United Laboratories, Inc. v. Kuykendall (1988) holds a covenant valid and enforceable only if it is (1) in writing, (2) made part of a contract of employment, (3) based on valuable consideration, (4) reasonable both as to time and territory, and (5) not against public policy.
Not applicable. No healthcare-specific non-compete statute exists in North Carolina, and Kuykendall — the leading North Carolina non-compete case — makes no mention of veterinarians or healthcare practitioners. A North Carolina veterinarian's covenant is judged under the same common-law test as any other employee's.
No dollar or wage threshold. N.C. Gen. Stat. § 75-4 separately requires that an agreement limiting the right to do business in North Carolina be in writing and signed by the party restrained — a formality requirement, not a compensation-based cutoff.
No fixed statutory cap. Kuykendall's fourth factor asks only whether the covenant is 'reasonable both as to time and territory,' and the case recognizes protecting customer relationships and goodwill as a legitimate interest, 'most applicable where the employee is the sole or primary contact between the customer and the employer.'
Not stated in the sources read.
Not stated in the sources read.
Not stated in the sources read.
N.C. Gen. Stat. § 75-4 was enacted in 1913. United Laboratories, Inc. v. Kuykendall was decided July 28, 1988 and remains controlling, cited by 445 later opinions, most recently in the reviewed corpus by Andy-Oxy Co. v. Harris (2019).
“Today, in North Carolina, restrictive covenants between an employer and employee are valid and enforceable if they are (1) in writing; (2) made part of a contract of employment; (3) based on valuable consideration; (4) reasonable both as to time and territory; and (5) not against public policy.”
North Carolina has no general non-compete statute setting a reasonableness test.
Kuykendall instead holds that a restrictive covenant between an employer and employee is valid and enforceable only if it is (1) in writing, (2) made part of a contract of employment, (3) based on valuable consideration, (4) reasonable both as to time and territory, and (5) not against public policy.
For an associate veterinarian reading an offer, each of the five is a separate gate, ending with whether its time and territory limits are reasonable.
Kuykendall also treats protecting customer relationships and goodwill against a departing employee as a legitimate interest, most applicable where the employee was the sole or primary point of contact between a customer and the employer — a description that could fit a solo associate veterinarian in a small clinic.
The case sets no fixed number of months or miles; it asks the reasonableness question on the facts each time.
“Today, in North Carolina, restrictive covenants between an employer and employee are valid and enforceable if they are (1) in writing; (2) made part of a contract of employment; (3) based on valuable consideration; (4) reasonable both as to time and territory; and (5) not against public policy.”
North Carolina has not enacted a healthcare-practitioner non-compete statute naming veterinarians.
The research behind this page found no such statute in North Carolina's code, and Kuykendall, the leading North Carolina non-compete case, makes no mention of veterinarians or healthcare practitioners.
A North Carolina veterinarian's covenant is judged under the same five-factor common-law test set out above; the sources read for this page do not address whether North Carolina courts apply any different scrutiny to other professions' covenants.
North Carolina's test does not turn on how much a veterinarian earns; there is no statutory wage threshold.
Section 75-4 imposes a narrow formality instead: an agreement limiting the right to do business in North Carolina is unenforceable unless it is in writing and signed by the party who agrees not to enter the described business or territory.
Kuykendall's fourth factor then asks whether the covenant's time and territory limits are reasonable, without setting a specific number of months or miles.
For a veterinarian reviewing an offer, that means checking first whether the covenant is in writing and signed, and only then weighing whether its actual duration and geographic reach are reasonable for the practice's interest.
“No contract or agreement hereafter made, limiting the rights of any person to do business anywhere in the State of North Carolina shall be enforceable unless such agreement is in writing duly signed by the party who agrees not to enter into any such business within such territory”
The research behind this page reads North Carolina's writing-and-signature statute and its leading non-compete case; neither states how a North Carolina court modifies an overbroad covenant (whether by blue-pencil, red-pencil, or reformation), how North Carolina treats a covenant tied to selling a veterinary practice or an ownership interest, or how client or staff non-solicitation clauses are handled.
Kuykendall itself distinguishes an employer-employee covenant from the sale-of-business context without setting the standard that applies there.
Those gaps matter most at a buy-in or buy-out, where a covenant may be drafted alongside the purchase terms.
They are left blank here rather than filled from another state's rule — take them to a North Carolina attorney with the whole agreement in hand.
Have the agreement itself reviewed
The reasonableness test, what a radius is measured from, the access-to-care argument, and the difference between a non-compete and a non-solicitation clause are covered in the national guide to veterinary non-competes. This page covers only what is specific to North Carolina.
North Carolina has one statute that touches non-competes, N.C. Gen.
Stat. § 75-4, but it only requires that the agreement be in writing and signed — it is not itself a reasonableness test.
The substantive test comes from case law: United Laboratories, Inc. v.
Kuykendall (1988) sets the five-factor standard courts actually apply.
Because the rule is split between a narrow statute and a court decision, have a North Carolina attorney who handles veterinary employment contracts read your specific agreement against both.
North Carolina has no healthcare-specific non-compete statute at all — not one that names veterinarians, and not one that names physicians or any other health profession.
A veterinarian's covenant is judged under the same five-factor common-law test from Kuykendall as any other worker's.
A North Carolina employment attorney can confirm whether any newer statute has since changed that.
The sources behind this page identify no wage or salary threshold.
North Carolina's test turns on whether the covenant is in writing, part of an employment contract, supported by consideration, reasonable as to time and territory, and not against public policy — not on what the veterinarian earns.
That describes how the rule is written, not how it applies to a particular contract; a North Carolina attorney can tell you how it bears on yours.
The sources read for this page do not address how North Carolina treats a covenant tied to the sale of a practice or an ownership interest, so this page does not answer it.
Kuykendall itself distinguishes an employer-employee covenant from the sale-of-business context without stating what standard governs there.
Before signing a buy-in or buy-out agreement, have a North Carolina attorney who handles veterinary practice transactions review the covenant and the purchase agreement together.
N.C. Gen.
Stat. § 75-4 was enacted in 1913.
Kuykendall, the leading case, was decided July 28, 1988 and remains controlling — it was cited as recently as a 2019 opinion, Andy-Oxy Co. v.
Harris, in the research behind this page.
This page was last verified in September 2026; courts continue to apply and cite Kuykendall, so confirm the current law and ask an attorney before relying on it.
Sources
Sourced from North Carolina’s own statute or leading court decisions (see the citations above). Verified September 2026; the governing provision was last amended N.C. Gen. Stat. § 75-4 was enacted in 1913. United Laboratories, Inc. v. Kuykendall was decided July 28, 1988 and remains controlling, cited by 445 later opinions, most recently in the reviewed corpus by Andy-Oxy Co. v. Harris (2019). This page is general information, not legal advice.